NOTICE OF VIOLATION

Via Certified Mail# _______________

To: Mr. W. Kent Wishart, President Robert L. Stillwell, Registered Agent

Graphic Sciences, Inc. Graphic Sciences, Inc.

7515 Northeast Ambassador Place, Suite L 117 Industrial Way

Portland, Oregon 97220 Charlestown, IN 47111

Cause No. 2000-9932-W

Based on an investigation by designated representatives of the Indiana Department of Environmental Management (IDEM), Graphic Sciences, Inc., located at 117 Industrial Way, Robinson Industrial Park, Charlestown, IN, is in violation of the following environmental rules:

1. Pursuant to 327 IAC 5-12-2(a)(1), pollutants introduced into publicly owned treatment works (POTWs) by any source of non-domestic wastewater shall not pass through or interfere with the operation or performance of the POTW.

This violation is based on the fact that, on September 12, 2000, representatives for IDEM observed that wastewater from your industrial processes caused total loss of treatment at the Charlestown POTW by interfering with operation and performance of the POTW.

2. Pursuant to 327 IAC 15-6-6, all information required under 327 IAC 15-3 and Section 5 of this rule will be submitted to the commissioner in accordance with 327 IAC 15-3-3, except, for persons that operate under 327 IAC 15-5 and that are affected by this rule, the Notice of Intent (NOI) letter shall be submitted one hundred eighty (180) days before completion of construction of the facility.

This violation is based on the fact that, on September 12, 2000, representatives for IDEM observed that your site grounds contained ink residuals lost from containers stored outside the building that were capable of producing point source discharges consisting of storm water associated with industrial activity, but you did not submit an NOI, as required.

3. Pursuant to 327 IAC 15-6-7(a), the person regulated under this rule shall develop a storm water pollution prevention plan which identifies potential sources of pollution which may reasonably be expected to affect the quality of storm water discharges associated with industrial activities from the facility; describes practices to be used in reducing the potential for pollutants to be exposed to storm water; and assures compliance with the terms and conditions of this rule.

Pursuant to 327 IAC 15-6-7(b), for each area of the plant that generates storm water discharges associated with industrial activity with a reasonable potential for containing significant amounts of pollutants, a plan shall contain a description of potential pollutant sources. The facility shall be operated and maintained in such a manner that exposure of storm water to potential sources of significant pollutant material is minimized.

Pursuant to 327 IAC 15-6-7(c)(1), a storm water pollution prevention plan shall be certified by a qualified professional.

Pursuant to 327 IAC 15-6-7(c)(2), a storm water pollution prevention plan shall be retained on-site and be available for review by a representative of the commissioner upon request.

Pursuant to 327 IAC 15-6-7(c)(3), a storm water pollution prevention plan shall include a schedule with the plan which allows for compliance with the terms of the plan on or before three hundred sixty-five (365) days after submission of the NOI letter, or, in the case of new facilities, prior to initiation of operation at the facility. The commissioner may grant an extension of this time frame based on a request by the person showing reasonable cause.

Pursuant to 327 IAC 15-6-7(c)(4), the person regulated under this rule shall report once per quarter its progress in developing and implementing the plan. Once the plan is completed and implemented, the reports may cease. The reports shall be sent to:

Indiana Department of Environmental Management

Permits Section

Office of Water Management

100 N. Senate Avenue

P.O. Box 6015

Indianapolis, Indiana 46206-6015

Pursuant to 327 IAC 15-6-7(c)(5), the person regulated under this rule shall amend the plan whenever there is a change in design, construction, operation, or maintenance at the facility, which may have a significant effect on the potential for the discharge of pollutants to surface waters of the state, or upon written notice by the commissioner that the storm water pollution prevention plan proves to be ineffective in achieving the general objectives of controlling pollutants in storm water discharges associated with industrial activities.

Pursuant to 327 IAC 15-6-7(d)(1), monitoring and reporting requirements shall be conducted at each discharge outfall, or representative discharge outfall, composed entirely of storm water runoff, in accordance with this rule.

These violations are based on the fact that, on September 12, 2000, representatives for IDEM observed that you neither had any records of the required storm water pollution prevention plan readily available, nor was any such plan being implemented on your site.

4. Pursuant to 327 IAC 2-6.1-7, any person who operates, controls or maintains any mode of transportation or facility from which a spill occurs shall, upon discovery of a reportable spill to the waters of the state, shall do the following:

(A) Contain the spill, if possible, to prevent additional spilled material from entering the waters of the state.

(B) Undertake or cause others to undertake activities needed to accomplish a spill response.

(C) As soon as possible but within two (2) hours of discovery, communicate a spill report to the Department of Environmental Management, Office of Environmental Response: Area code 1-888-233-7745 for in state calls (toll free).

These violations are based on the fact that, on November 8, 2000, representatives for IDEM observed that your facility experienced a spill occurrence that was not contained, responded to, and reported in a timely manner, as required.

5. Pursuant to 327 IAC 2-1-6(a):

(1) All waters at all times and at all places, including the mixing zone, shall meet the minimum conditions of being free from substances, materials, floating debris, oil, or scum attributable to municipal, industrial, agricultural, and other land use practices, or other discharges:

(a) that will settle to form putrescent or otherwise objectionable deposits;

(b) that are in amounts sufficient to be unsightly or deleterious;

(d) which are in amounts sufficient to be acutely toxic to, or to otherwise severely injure or kill aquatic life, other animals, plants, or humans; and

(e) which are in concentrations or combinations that will cause or contribute to the growth of aquatic plants or algae to such degree as to create a nuisance, be unsightly, or otherwise impair the designated uses.

(2) At all times, all waters outside of mixing zones shall be free of substances in concentrations which on the basis of available scientific data are believed to be sufficient to injure, be chronically toxic to, or be carcinogenic, mutagenic, or teratogenic to humans, animals, aquatic life, or plants.

This violation is based on the fact that, on November 8, 2000, representatives for IDEM observed that you allowed contaminated industrial storm water to leave your facility site grounds and enter natural waters of the state, where it created nuisance conditions.

In accordance with IC 13-30-3-3, the Commissioner is required to notify an alleged violator in writing that a violation may exist and offer an opportunity to enter into an Agreed Order providing for the actions required to correct the violations and for the payment of a civil penalty. The Commissioner is not required to extend this offer for more than sixty (60) days.

Entering into an Agreed Order will prevent the issuance of a Notice and Order of the

Commissioner under IC 13-30-3-4, or the filing of a civil court action under IC 13-14-2-6. IDEM encourages settlement by Agreed Order, thereby saving time and resources. Timely settlement by Agreed Order may result in a reduced civil penalty. Settlement discussions will also allow the opportunity to present any mitigating factors that may be relevant to the violations. In addition, as provided in IC 13-30-3-3, an alleged violator may enter into an Agreed Order without admitting that the violation occurred.

If settlement is not reached within sixty (60) days of receipt of this Notice of Violation, the Commissioner may issue a Notice and Order containing the actions that must be taken to achieve compliance, the required time frames, and an appropriate civil penalty. Pursuant to IC 13-30-4-1, the Commissioner may assess penalties of up to $25,000 per day for each violation.

Please contact Dave Knox at 317/233-5975 within fifteen (15) days after receipt of this Notice regarding your intent to settle this matter. If you are willing to resolve this matter as provided for in the enclosed Agreed Order, please sign and return it to the Office of Enforcement at the above address within the sixty (60) day settlement period.

For the Commissioner:

Date: _______________ Signed 1/21/01 Felicia A. Robinson

Assistant Commissioner

Office of Enforcement

cc: U.S. EPA Region V, Water Section

Clark County Health Department